The Star Online: Business

Public Invest maintains "Outperform" on DRB-Hicom, TP RM3.53
KLCI rallies in early trade, PetDag, HLFG up
RHB maintains "Neutral" on Maxis, fair value RM7.15

Public Invest maintains "Outperform" on DRB-Hicom, TP RM3.53

Posted: 09 Jun 2013 07:23 PM PDT

KUALA LUMPUR: Public Invest Research is maintaining its "Outperform" rating on DRB-Hicom Bhd with a target price of RM3.53 as it favours DRB for its cross-selling and the positive outlook on its automotive division.

We believe its current share price is attractive and not fully reflecting the underlying value of vast assets within the group,' it said.

It said DRB's property division is expected to increase its contribution to the group and see considerable operational and marketing synergies between Bank Muamalat and Pos Malaysia in its services sector.

"The extensive reach of Pos Malaysia, with more than 700 post offices and 300 pos mini will enable Bank Muamalat to grow its Islamic banking services to many parts of Malaysia, in particular the rural areas which are normally underserved," it said.

However DRB risks turning around Proton but it expects the firm to partner with global players such as Honda or Volkswagen to revive Proton.

It added weaker economy and lower disposable income would also dampen car demand and the disposal of assets at a lower price would affect its valuation.

"Foreign shareholdings of DRB increased to 20.9% as at financial year 2013 from 15.2% in 2011. As such, any sell-down by foreign investors may weigh on its share price," it said.

Public Invest said it projects DRB's financial year 2014 core earnings to RM370mil.

"As for its services segment, its loss of income from the disposal of Hicom Power, which contributed RM57.4mil in finaicial year 2012, will weigh down its earnings, but it will be partly offset by improved earnings from Bank Muamalat," it said.

KLCI rallies in early trade, PetDag, HLFG up

Posted: 09 Jun 2013 07:03 PM PDT

KUALA LUMPUR: Malaysia's blue chips surged in early trade on Monday, kicking off the new week on a strong note in line with firmer key regional markets, underpinned by gains in Petronas Dagangan and HLFG.

At 9.50am, the FBM KLCI was up 13.11 points to 1,788.70. Turnover was 387.77 million shares valued at RM257.39mil. There were 463 gainers, 71 losers and 183 counters unchanged.

Hwang DBS Vickers Research (HDBSVR) said that driven by optimistic economic growth outlook, major equity indices on Wall Street jumped between 1.3% and 1.4% last Friday.

It said sentiment was boosted by expectations that the US Federal Reserve might not taper down the quantitative easing program anytime soon. "This may set the stage for Asian bourses to make a technical rebound following last week's heavy losses.

"Back home, the benchmark FBM KLCI - which was the only stock bellwether out of the 11 regional exchanges tracked by us to post a weekly gain - could rise towards the immediate resistance threshold of 1,785," it said.

Among the KLCI stocks, Petronas Dagangan rose 48 sen to RM26.40 and HLFG gained 32 sen to RM15.32 while KL Kepong 26 sen to RM21.70 and Petronas Gas 22 sen to RM21.42 and BAT 20 sen to RM64.

Goldsta fell the most, down 11 sen to RM1.45 in thin trade while MY EG, which had rallied in recent days, shed seven sen to RM1.52. United Plantations fell six sen to RM27.74 and Top Glove five sen to RM6.53.

RHB maintains "Neutral" on Maxis, fair value RM7.15

Posted: 09 Jun 2013 06:48 PM PDT

Monday June 10, 2013

KUALA LUMPUR: RHB Research is maintaining its "Neutral" call on Maxis Bhd with an unchanged fair value of RM7.15 despite rumours of Ananda exiting Maxis.

RHB said it expects Maxis earnings growth to "remain tepid as margins may still be at risk if device subsidies escalate or cost discipline is not maintained".

It added there was a speculation that Ananda Krishnan may sell his 29% stake in Maxis for RM35bil or RM16 per share, which is double the current market value, however RHB maintains neutral as it involves the holding company Maxis Communications Bhd (MCB).

We found it difficult to see any party who has the financial capability to acquire Ananda's stake or the willingness to pay more than double what Maxis is currently trading at.

"Note that MCB also has mobile operations in India and Indonesia, which partly explains the high valuations. Besides that, Ananda may not need the cash given that he had sold Tanjong Energy Holdings to 1Malaysia Development Bhd for RM5bil last year," it said.

RHB noted without a chief executive officer and an internal reorganization due to departure of several top management staff, RHB expects no changes to Maxis strategic plans even if a new party buys over Ananda's stake.

Kredit: www.thestar.com.my

Ahad, 9 Jun 2013